EU: UK Membership

My Lords, I have said that we will always hold debates on Europe in Parliament, as we are doing today. I do not accept the assumptions that the noble Lord makes, and I am not going to be drawn into a question that is based on a wholly false premise. We face a very different set of challenges today from those of 50 or even of 10 years ago. Globalisation of the world economy, climate change, terrorism and organised crime are just some of the new challenges that we face. We need to work in many multilateral settings, and not least alongside our EU partners and the Commission to ensure that the EU responds to this century’s and this country’s challenges as it did in the last century and that it has the policies and mechanisms to ensure that we can do so. If the EU is to provide an effective response, it needs to continue to develop and reform effectively. That is one of the functions of change; I doubt that there will ever be a steady state in that sense. That is why our continued active and constructive engagement with our partners is so essential, to continue to shape how the EU develops within its borders and how it operates beyond them. This is not a day to deal with the euro, in response to the noble Lord, Lord Taverne, although of course it would be intriguing to do so. The European Union can look outwards and it is capable of doing so in pursuing policies that make the lives of Europeans better. That is the fruit of 10 years of being at the heart of Europe and 10 years of engagement by this Government. If the noble Baroness, Lady Williams, would be so good as to go back to the speeches made to my party’s conference by the Prime Minister, she will see that it has always been there. The views expressed in the full glare of the media are not always approved by the media. There are difficulties. Schengen has come up several times in the debate. If we have shown some reservations about that, those of us who are concerned with having properly and significantly successful border control have a continuing debate to have with our European friends. To take one of the most recent successes, let us look at how the enlargement of the European Union has brought greater diversity, but with it greater complexity, to the organisation. It is creating new markets and has spread what I am proud to call European values of tolerance and respect for human rights across a continent that was divided by wars for many centuries. Like the noble Lord, Lord Maclennan, I think that it is vital that each generation understands the origins of the project; the noble Lords, Lord Teverson and Lord Clinton-Davis, made similar points. The changes that have happened over this period, from the end of World War Two through reconstruction to the end of the Cold War, are the extension not just of markets but of our peace and democracy, and they are political as well as economic triumphs. The noble Lord, Lord Brittan, said with some force that these changes are bound to be considered in terms of our institutions as well as of our sentiments. That is certain to happen. In this context, there is no proposal to transfer sovereignty, nor would we accept such a transfer. The noble Lord, Lord Maclennan, who unquestionably sees the big picture of empowered institutions in this, should not mistake the process as being one where we look for the lowest common denominator. That is not the proposition, nor would it achieve public support. I turn to the future. Like the noble Lord, Lord Jay of Ewelme, I think that if we are to make more progress we need to be candid about difficulties. On the EU and its role in economic competitiveness, I say that through the EU we have been able to deliver a level of prosperity that could not have been achieved by a medium-sized economy on the European sidelines. But we must continue to adapt to ensure that the EU responds to new economic challenges. Hard-headed support—that phrase has come up a few times—was admirably described in Ed Balls’s CER pamphlet, Britain and Europe. It focused especially on what the City, finance and business can do; as the noble Lord, Lord McNally, said, they are the kinds of areas in which we will get the greatest progress. The noble Lord, Lord Tugendhat, quoted from that leaflet and distilled the positive case. The challenges of the 1990s were perhaps internal to Europe. The single market barriers to delivery on the promise of the four fundamental freedoms had to be broken down. There were successes in areas such as goods and services, telecommunications and transport, and the benefits are significant and well established. In other areas—for example, the network industries—we are only now getting to grips with what is needed for the single market to succeed. The EU must now increasingly face outwards and ensure that it is globally competitive. The noble Lord, Lord Howell of Guildford, often makes that point, and I agree with him. Competition will become more intense as rapidly emerging economies catch up with the EU. There has been brief mention of China, India and Brazil, which are all good examples of that. The EU is a cornerstone of the UK’s clout in these global markets. We could—and some would urge that we should—simply trade individually with those countries but, like all EU members, our trade is bolstered by the reliability of our continent—by its stability and the fact that everyone trades more and trades better. The noble Lord, Lord Jay, referred in the first sentences of his speech to the business community, and it is absolutely clear that business regards the EU as the only intelligent way of driving forward. The Lisbon and Hampton Court agendas were both attempts to make sense of this rapidly changing world and build a fair and competitive economy that can lead in global terms, focusing increasingly on the drivers of modern competitiveness. Getting the right balance between that and the social and working rights elements is also vital for a decent society in which people enjoy their rights in a proper way. The Commission’s ambitious better regulation agenda has been discussed several times in the House. I shall not dwell on it, but it is focusing now on alternatives to legislation in complex areas such as financial services or carbon pricing. I welcome that and Europe probably needs to do more of it. That is why the Government welcome the Commission’s review of the single market, because we agree with the Commission that the need to reconsider how we deliver a more open, flexible and outward-facing single market is important, and we need to identify the best tools to achieve that. My noble friend Lord Haskel mentioned the joint Treasury-DTI paper, which contains the Government’s views in this area. We want a greater use of market-based evidence, a shift away from the idea of completing the single market towards a dynamic concept of continually enforcing single-market principles wherever needed, and more use of competition policy, not just legislation. I endorse what he said about citizens’ engagement; enforcing fundamental freedoms is not just about benefiting business, although it does that. For example, lower mobile roaming prices benefit business, break up cartels and give citizens greater rights. Therefore, I thoroughly support the comments of the noble Lord, Lord Brittan, on the importance and strength of competition policy in creating opportunity and helping to push us all in that direction. I turn briefly to the EU’s role in foreign policy and defence priorities, an issue raised by the noble Lords, Lord Roper and Lord Jay. The common foreign and security policy has developed considerably since 1992 and now makes a significant contribution to peace and security around the globe. The process has not been easy. Foreign policy is understandably anarea where member states—the 11 in 1992 and the27 now—rightly defend their autonomy of action, and there have been high-profile disagreements, not least about Iraq. But where we agree, increasingly often—Iran is a very good example of that—it makes sense for us to use our collective power and influence, because it works better. The noble Lord, Lord McNally, made the point about relations with Russia, which is another good example, and the noble Lord, Lord Bowness, set out the conditions that we need in this sphere to do the job effectively. We work in tandem with our EU partners not because we have to but because we choose to and because it works. In many situations, together we have far more weight. That is a fundamental truth not just about the EU but about the entire system of multilateralism. When we speak in concert, our demands, or our condemnations, carry that much more weight. I can say at first hand that I have experienced that in trying to move the Sudan/Darfur problems along, and that we may be starting to make some progress now on matters such as the hybrid force precisely because we have stuck to that, as I hope we will in Burma and on other problems. We badly need to be able to do so in ensuring that we have biting sanctions against reprehensible Governments such as Robert Mugabe’s. I say to the noble Lord, Lord Wallace, that I do not think that we have anything to defend about the way in which we have handled defence, or a great deal to defend about how we have tried to get a good story told about Europe. I noticed earlier at the Bar, at different times, both Denis MacShane and Geoff Hoon—indeed, I notice my friend Denis MacShane again. If people check through the press cuttings, they will see a continual parading of arguments about the value of Europe demonstrated in what we say. In the case of the Home Office, John Reid has repeatedly made statements on the juxtaposed arrangements with France—and very positive statements too, welcomed by President Sarkozy. The European security and defence policy was a Franco-British initiative. It was a bold move and I believe that it is showing success in many areas. NATO is, however, still the only means for the collective defence of Europe. The EU member states have agreed that this is not a role for the EU. The ESDP is designed to complement our efforts in NATO by allowing the EU to share the burden of international crisis management. There is no hiding from the fact that not all members of both organisations have exactly the same vision about how they should develop, grow or interact. We need greater clarity, but we all share the positive impact on the ground and the need for that. In the upcoming ESDP missions to Kosovo and Afghanistan, the EU and NATO will be operating in the same theatre, and I believe that they will do so with success. Our objective is both effective co-ordination on the ground and strategic partnership between the two organisations. There is still the challenge of reforming the EU's budget. It is essential to achieve our aim of a modern, outward-looking EU, enabling member states to respond to the challenges of globalisation as well as delivering opportunities, fairness and prosperity for everyone. The UK wants radical reform in how the EU spends its money. There is no secret about that, and we have healthy debates with our partners about it. The common agricultural policy is particularly wasteful and is still indefensible. Almost $2 a day in subsidies is received for each cow in Europe, double the average income for an African. Gordon Brown has pointed out that agricultural protectionism costs Europe and America $300 billion a year, six times the amount spent on aid in the poorest parts of the world. I was very pleased that the noble Lord, Lord Hannay, also focused on the CAP. It proves beyond a shadow of a doubt that reform is not simply a budgetary challenge, but a moral issue when you think about how money is spent. It is also an issue for us to consider when we say that we want the Union to be committed to poverty eradication and global fair trade. We see the impact of that most visibly in Africa. I share the view of the Commonwealth Secretary-General, Don McKinnon, who described EU farm subsidies as, "““flagrantly arrogant, immoral and self-centred””," and in disregard of the poor of the world. I mention that not because I want to be unkind or hostile but because I want us to identify the work that we still need to do for greater success. Since our presidency in 2005, a wide-ranging review of the EU budget, including of the CAP, in 2008-09 has been agreed. It must help us to achieve our vision of an EU budget which is truly fit for purpose in this century and in a globalised world economy. We need to ensure more effective EU action through further application of the principle of subsidiarity. This has been a priority for the Government. We have consistently supported a greater role for national parliaments; indeed, some of the scrutiny role that might be involved in the discussions of an amending treaty may very well have great effect on this point. These are all important issues and we must ensure that the principle is not breached. Better implementation of subsidiarity can help us to strike the right balance between action at regional, national and EU levels, and to connect citizens across Europe in the decision-making process. The Minister for Europe reiterated the Government’s commitment to the subsidiarity principle in his Written Ministerial Statement of December 2006. It will be one of the six priorities for the UK in negotiations on the future of Europe. My noble friend Lord Harrison expressed the view that, in advance of the EU Council meeting, it is not wise to be certain about what will come out in the detail and what will happen on QMV and so on. I share his view that we should wait to see what comes out, what is proposed and what the balance of interests is and then debate those issues. I can tell him that our relations and work with the Government of the Netherlands are wholeheartedly good, and that we support the aim of meeting the Copenhagen criteria, but each country must consider that on its merits. We are opposed to any new hurdles being introduced. The debate to be had in your Lordships’ House on the yellow card issue is probably a long one and perhaps not for today. For all the achievements, there is still a good deal to be done, not least in areas concerning the environment and related matters, as raised by the noble Baroness, Lady Miller. However, we are certainly in a better position to take some of the lead, particularly following Nick Stern’s report, although I hope that others will feel that they can be part of that lead on a collegial basis. We are not isolationist and we have no role as an isolationist entity in the kind of world that we live in. President Clinton rightly described the achievement of the new architecture of Europe as the greatest and most successful example of fixing in place peace and community. That is not a ground for being complacent, but I share with the noble Lords, Lord Inglewood and Lord Bowness, the view that we should stop dancing around the issue of whether we are in or out—whether the decision has finally been taken—and get on with the practical issues of dealing with this changing environment and the need to change alongside it. I hope that, in saying that, I am not putting words into their mouths. In conclusion, in the briefest terms, there is much that we need to do on the international stage, and the process of enlargement will help us to do it. My noble friend Lord Harrison called on us to work with new members in new solidarity and new alliances. I am with him on that. The right reverend Prelate the Bishop of Chester said that the boundaries within which these new allies and friends come to us will probably always move further outwards, and I agree. I also agree with my noble friend Lord Watson of Invergowrie, who emphasised the concerns of citizens in all the new member states. We share those concerns. The noble Lord, Lord Williamson of Horton, guided us towards a realistic judgment, which we must make, about what the greatest benefits to our country are. He spoke about how the diverse strengths of Europe should work together to provide leverage to the strengths of our own country. His example of the seventh framework is telling. Both basic and near-market research are indeed fundamental to our economy. This has been a tremendous debate. We have a lot of work to do as we go forward, but it is worthwhile work, which is not always the case I do not agree with Euro-sceptics but I understand that they are part of a crucial debate. I have somewhat less sympathy with Euro-phobes. Phobia is a sort of neuroticism and it leads you to feeling jumpy and inconsistent when you try to judge things. Rather like the noble Lord, Lord Wallace, I have even less sympathy with Euro-psychotics. Their view is the hardest of all to take. I suspect that they go to bed each night thanking the Almighty for the existence of the English Channel on the grounds that it will block cyber-crime, CO2 emissions and avian flu. I just advise them to think about the world we live in. These borders and boundaries no longer have a meaning, and unless we work in an international and co-operative way with those democratic and peaceful nations, many of whom we have brought to peace and democracy, our chances of dealing with these issues are not negligible; they are zero. Let us work on those things and celebrate the means that we have achieved to work on them. That is the 21st century and it is very different from the past.